The Star Tribune put out an article that talks about the people and organizations offering contracts for deed and how they can be a great option for buyers but can also be risky for buyers, especially if they don't have help from someone experienced in those type of sales. It's important that before buying a home on contract for deed that you speak with an attorney or real estate agent about the terms of the contract and have a title company provide title and closing services to ensure your contract is recorded … [Read more...]
Negotiating Non-Typical Personal Property
March 5, 2012 by Leave a Comment
Most Twin Cities real estate sales include the washer, dryer, refrigerator, range and dishwasher but more and more houses today have what I'd call non-typical personal property such as: Huge flat screen tv's mounted to the wall Built-in surround sound Projectors & screens Home theater furniture Pool tables etc. In most cases the cost to the seller for these items far outweighs their value today - used equipment on its own has diminished value and with electronics the value can decrease quickly as … [Read more...]
Some Agents Piss Me Off
March 4, 2012 by Leave a Comment
This weekend I was out with a client showing a few homes when I came across an agent that had put out 19 signs and a set of balloons on a single intersection. When I do open houses I have put out 2-3 signs on a corner to catch people's eyes but this agent had the gall to litter the entire intersection with these obnoxious signs, many of which actually made it hard to see oncoming cross traffic. Communities regularly create and modify their sign ordinances to prevent sign pollution and agents like piss off the … [Read more...]
Deception Is Not Our Code
February 27, 2012 by 3 Comments
The following story intentionally leaves out details of the parties involved due to the fact that my knowledge of the story is indirect and thus I don't know all the facts. Today I heard a story about an agent & seller that reduced a property's price by more than 50% in an effort to drum up tons of buyer interest and get a crush of offers via sealed bid due in a couple weeks. The agent telling the story to me said at least 3 agents in his office had buyers inquire on this property and the overall reaction … [Read more...]
Minnesota Home Foreclosures Dropped 17% in 2011
February 24, 2012 by Leave a Comment
The Minnesota Home Ownership Center and others published a report created by HousingLink that details the sheriff sale activity in Minnesota for 2011. We saw sheriff sales decline a substantial 17% to the lowest level since 2007: The far northern metro has continued to be the hardest hit area of Minnesota, though this was also one of the fastest growing areas of the state during the housing boom and it is clear these are related: While we are still at very high levels of foreclosure, this is yet … [Read more...]
Home Buying: When an Offer Negotiation Becomes an Auction
February 21, 2012 by 1 Comment
Since 2006 the real estate market has been such that it was uncommon for more than one buyer to fall in love with the same house at the same time. But as I have been mentioning for several months, homes for sale inventory has dropped dramatically from a year ago while the number of buyers in the market has ballooned. The last 5-6 years has programmed most buyers to believe that they must negotiate the price of the home to ensure they get a "good deal" and that sellers have no other choice than to work with them. … [Read more...]
Condos Losing FHA Approval Risk Losing Much More
February 16, 2012 by Leave a Comment
Over the last few years I've encountered more and more condominium projects that have lost their FHA project approval and have written on the issue before. What does it mean when a project loses approval? Buyers in those developments will not be able to secure FHA financing for their purchase. In 2011, approximately 9% of all condo sales were financed by the buyers using FHA financing. 9% seems small, right? Well yes it is relatively small, but since there are currently 6.5 months of supply of condos … [Read more...]
Quick Tips: Boost Your Credit Score For Better Mortgage Rates
February 11, 2012 by Leave a Comment
Credit scores play a huge role in today's mortgage market. Blame it on the high default rates of the last half-decade brought on by lending standards that let anyone borrow almost any amount of money. Lenders are reserving their lowest rates for the customers that are most likely to make on-time repayments and history has shown that the higher your credit score is, the lower risk you are. Mortgage rates are near an all-time low in Minnesota. However, the low rates you see advertised on TV and online are only … [Read more...]
Twin Cities Traditional Home Sales Surge in January
February 10, 2012 by Leave a Comment
January 2012 saw traditional home sales surge 28% versus January 2011 after having also posted 21% gains in December versus the year prior. As foreclosure and short sale inventory continues its decline and buyer demand continues to rise, buyers are coming back in force into what used to be our bread-and-butter housing market: the traditional home seller. One concern has been whether buyers who had grown accustomed to the bargains offered by foreclosures would be willing to purchase a more expensive home listed … [Read more...]
Federal & Minnesota Taxes Not Due Till April 17 2012
February 9, 2012 by Leave a Comment
This year, for the 3rd time in 7 years, your federal income taxes will not be due April 15. Instead, because of a combination of the calendar, a holiday, and tax law, Tax Day 2012 is delayed until Tuesday, April 17. You will have two extra days to prepare and file your federal income taxes this year. If you are like me, you're going to use every second of that time to procrastinate :) This year April 15 falls on a Sunday and all federal offices are closed on Sundays. This means that that taxes can't be filed on … [Read more...]
